What is a 10 foot investor?
The name comes from a time when I was looking at companies that might be described as ‘colourful’. They had asymmetric payoffs (with a larger downside) and unquantifiable risks – the outsider, regardless of skill level, had no idea of the types of risk these companies were taking. The risks themselves were asymmetric too; it would only take a small amount, say 5%, of the business going bad to completely bork the company.
Needless to say I did not invest, but I was running my thoughts past a friend who admonished me ‘Remember what Buffett says? We look for 1 or 2 foot hurdles, not 10 foot hurdles.‘ That was a mis-quote, with Warren Buffett originally saying: “I don’t try to jump over 7-foot hurdles: I look for 1-foot hurdles that I can step over.” Either way, a point well taken.
However, I have an intellectual attraction to these ’10 foot hurdles’, they are one of the things that keeps me hooked on investing. Thus the name ’10 Foot Investor’ serves both as a reminder of the perils associated with such investing, and a unique signifier that reflects the type of investing that I enjoy. I like figuring things out.
What is this blog about?
Despite the name, you won’t read too many 10-foot investment cases here. It is too easy to legitimise a zany investment idea – much like a sensationalist media report – by giving it room to breathe, when truthfully most such things (media and complex investments both) should be left on the shelf.
I am writing this blog as a record of my investment process while I attempt to beat the market with my portfolio over the next 5 years. I will write routinely about why I’m buying certain companies, and not buying other ones.
I will also write occasionally about politics and other things as they take my fancy. I like an underdog story and I also think that playing ‘devil’s advocate’ is an important part of a rational thought process. Thus, you should not take anything that I may write as my true and complete opinion.
Thank you for reading and I hope that you enjoy 10foot investor.
Unfortunately in this day and age, even a humble blogger needs a disclaimer. Please read mine here.